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SNAP CERTIFICATION MANUAL – SECTION 4000 7B4800 Vehicles 47B4851 Determining Fair Market Value

Fair market value is the average trade-in value of the vehicle as listed on the selected web site unless the household disputes the value and presents conclusive proof that the information obtained from the web site is inaccurate.  NOTE:The value of special or optional equipment or low mileage will not be considered when determining the average trade-in value of a vehicle. When a non-excluded vehicle is too new to appear on the web sites, the worker may determine the current average trade-in value by contacting a local car dealer or by consulting a recent newspaper ad for used cars of the same make, model, and year. (A copy of the ad should be placed in the case record as documentation.) Information such as contracts for purchase may be inaccurate because vehicles decrease in value substantially once they become “used.” When a non-excluded vehicle is too old to appear on the web sites, the worker may accept the household’s statement of value if the statement is not questionable. To determine if the statement is questionable, the worker will consider the age and make of the vehicle. For example, luxury cars such as Cadillac’s, Mercedes, and Porsches do not lose value as quickly as other cars. A four-wheel drive vehicle will usually retain a high value also. Antique vehicles may have a high resale value if such vehicles have been properly maintained or have been restored. If the assigned value is questionable and information about the vehicle cannot be found on any of the designated web sites, the worker may accept a statement from a dealer or a copy of a newspaper ad for a similar vehicle. (A copy of the ad should be placed in the case record as documentation.) A household may indicate that for some reason such as body damage, inoperability due to motor failure or other major malfunction, or high mileage, a vehicle is in less than average condition. Households are allowed to contest the web sites value of a vehicle when its depreciated condition, in comparison with the average condition of the same make, model, and year of vehicle, makes its value “less than average.” The worker may accept statements from reputable repair shops to verify high mileage motor failures or other major malfunctions. Police reports or insurance documents may be accepted as proof of the current condition if a vehicle has been wrecked. Other proof may be accepted if it is conclusive in the worker’s judgment. The fair market value of non-excluded unlicensed vehicles is determined in the same manner as the fair market value of non-excluded licensed vehicles. See SNAP 4851 above. EXAMPLE: A household owns a 1968 Ford Thunderbird that is currently being restored. It is unlicensed. The household estimates that the current fair market value of the